Table 7-8 Nordin Avionics
J Cash Receipts Journal -Refer to Table 7-8 at the End of January, What

question 34

Multiple Choice

Table 7-8 Nordin Avionics
J. Nordin Avionics began business on January 1, 2019. The business was started with $10,000 in the cash account and $30,000 of inventory in stock. Nordin uses a sales journal to record credit sales and a cash receipts journal to record all cash receipts, including both cash sales and cash collections of credit sales. At the end of January, the two journals appeared as follows:
Sales Journal $\begin{array}{|l|l|l|l|l|r|}\hline& & & &\text { Accts Rec } & \\\text { Date } & \text { Invoice \# } & \text { Customer } & \text { Post } & \text { DR } & \text { COGS DR/ } \\&&&\text { Ref. } & \text { Sales Rev CR } & \text { Inventory CR }\\\hline \text { Jan } 4 & 1000 & \text { Reed, A. } & & \$ 5,000 & \$ 4,100 \\\hline 6 & 1001 & \text { Charles, B. } & & 1,240 & 990 \\\hline 13 & 1002 & \text { Reed, A. } & & 3,200 & 2,800 \\\hline 20 & 1003 & \text { Williams, D. } & & 900 & 820 \\\hline 22 & 1004 & \text { Charles, B. } & & 5,100 & 4,600 \\\hline & & \text { Total } & & \$ 15,440 & \$ 13,310 \\\hline\end{array}$ Cash Receipts Journal $$\begin{array} { | r | r | r | r | r | r | r | } \hline \text { Date } & { \begin{array} { c } \text { Cash } \\\text { Debit }\end{array} } & \begin{array} { c } \text { Sales Revenue } \\\text { Credit }\end{array} & \begin{array} { c } \text { Accts. } \\\text { Rec. } \\\text { Credit }\end{array} & \text { Invoice \# } & \text { Customer } & \begin{array} { r } \text { COGS DR/ } \\\text { Inventory CR }\end{array} \\\hline \text { Jan 5 } & \$ 3,300 & \$ 3,300 & & & & \$ 2,700 \\\hline 10 & 5,000 & & \$ 5,000 & 1000 & \text { Reed, A. } & \\\hline 14 & 9,000 & 9,000 & & & & 8,000 \\\hline 18 & 1,240 & &1,240 & 1001& \text { Charles,B. } & \\\hline & \$ 18,540 & \$ 12,300 & \$ 6,240 & & & \$ 10,700 \\\hline\end{array}$$
-Refer to Table 7-8 at the end of January, what was the balance in the subsidiary account receivable for A. Reed?

• A)$9,200 credit balance
• B)$3,200 debit balance
• C)$5,000 credit balance
• D)$3,200 credit balance

Identify the importance and applicability of different managerial skills at various management levels.

Grasp the concept and importance of planning in organizational management.

Comprehend the purpose and process of organizing within an organization.

Recognize the value and function of directing in management.

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Definitions:

Factoring Arrangement With Recourse

A financial transaction where a business sells its receivables to a third party (factor) but must buy back any uncollected receivables, thus bearing the risk of default.

Holdback

A portion of the purchase price of an asset that is withheld until certain conditions have been met, ensuring fulfilment of contractual terms.

Recourse Obligation

A liability that allows lenders to claim assets of the borrower or guarantor, beyond the collateral securing the loan, in case of default.

Fair Value Adjustment

An accounting process to adjust the book value of an asset or liability to its market value or fair value.